# \$4,000,000 in 1889 is worth \$120,256,086.96 today

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## Value of \$4,000,000 from 1889 to 2021

\$4,000,000 in 1889 is equivalent in purchasing power to about \$120,256,086.96 today, an increase of \$116,256,086.96 over 132 years. The dollar had an average inflation rate of 2.61% per year between 1889 and today, producing a cumulative price increase of 2,906.40%.

This means that today's prices are 30.06 times higher than average prices since 1889, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 3.33% of what it could buy back then.

The 1889 inflation rate was -3.16%. The current year-over-year inflation rate (2020 to 2021) is now 6.22%1. If this number holds, \$4,000,000 today will be equivalent in buying power to \$4,248,874.76 next year. The current inflation rate page gives more detail on the latest inflation rates.

 Cumulative price change 2,906.40% Average inflation rate 2.61% Converted amount (\$4,000,000 base) \$120,256,086.96 Price difference (\$4,000,000 base) \$116,256,086.96 CPI in 1889 9.200 CPI in 2021 276.589 Inflation in 1889 -3.16% Inflation in 2021 6.22% \$4,000,000 in 1889 \$120,256,086.96 in 2021

USD Inflation since 1635
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$4,000,000 in 1889

This chart shows a calculation of buying power equivalence for \$4,000,000 in 1889 (price index tracking began in 1635).

For example, if you started with \$4,000,000, you would need to end with \$120,256,086.96 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$4,000,000 is equivalent to \$120,256,086.96 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1889 dollars, the chart below shows how \$4,000,000 is worth less over 132 years.

According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1889-2021
Year Dollar Value Inflation Rate
1889 \$4,000,000.00 -3.16%
1890 \$3,956,521.74 -1.09%
1891 \$3,956,521.74 0.00%
1892 \$3,956,521.74 0.00%
1893 \$3,913,043.48 -1.10%
1894 \$3,739,130.43 -4.44%
1895 \$3,652,173.91 -2.33%
1896 \$3,652,173.91 0.00%
1897 \$3,608,695.65 -1.19%
1898 \$3,608,695.65 0.00%
1899 \$3,608,695.65 0.00%
1900 \$3,652,173.91 1.20%
1901 \$3,695,652.17 1.19%
1902 \$3,739,130.43 1.18%
1903 \$3,826,086.96 2.33%
1904 \$3,869,565.22 1.14%
1905 \$3,826,086.96 -1.12%
1906 \$3,913,043.48 2.27%
1907 \$4,086,956.52 4.44%
1908 \$4,000,000.00 -2.13%
1909 \$3,956,521.74 -1.09%
1910 \$4,130,434.78 4.40%
1911 \$4,130,434.78 0.00%
1912 \$4,217,391.30 2.11%
1913 \$4,304,347.83 2.06%
1914 \$4,347,826.09 1.01%
1915 \$4,391,304.35 1.00%
1916 \$4,739,130.43 7.92%
1917 \$5,565,217.39 17.43%
1918 \$6,565,217.39 17.97%
1919 \$7,521,739.13 14.57%
1920 \$8,695,652.17 15.61%
1921 \$7,782,608.70 -10.50%
1922 \$7,304,347.83 -6.15%
1923 \$7,434,782.61 1.79%
1924 \$7,434,782.61 0.00%
1925 \$7,608,695.65 2.34%
1926 \$7,695,652.17 1.14%
1927 \$7,565,217.39 -1.69%
1928 \$7,434,782.61 -1.72%
1929 \$7,434,782.61 0.00%
1930 \$7,260,869.57 -2.34%
1931 \$6,608,695.65 -8.98%
1932 \$5,956,521.74 -9.87%
1933 \$5,652,173.91 -5.11%
1934 \$5,826,086.96 3.08%
1935 \$5,956,521.74 2.24%
1936 \$6,043,478.26 1.46%
1937 \$6,260,869.57 3.60%
1938 \$6,130,434.78 -2.08%
1939 \$6,043,478.26 -1.42%
1940 \$6,086,956.52 0.72%
1941 \$6,391,304.35 5.00%
1942 \$7,086,956.52 10.88%
1943 \$7,521,739.13 6.13%
1944 \$7,652,173.91 1.73%
1945 \$7,826,086.96 2.27%
1946 \$8,478,260.87 8.33%
1947 \$9,695,652.17 14.36%
1948 \$10,478,260.87 8.07%
1949 \$10,347,826.09 -1.24%
1950 \$10,478,260.87 1.26%
1951 \$11,304,347.83 7.88%
1952 \$11,521,739.13 1.92%
1953 \$11,608,695.65 0.75%
1954 \$11,695,652.17 0.75%
1955 \$11,652,173.91 -0.37%
1956 \$11,826,086.96 1.49%
1957 \$12,217,391.30 3.31%
1958 \$12,565,217.39 2.85%
1959 \$12,652,173.91 0.69%
1960 \$12,869,565.22 1.72%
1961 \$13,000,000.00 1.01%
1962 \$13,130,434.78 1.00%
1963 \$13,304,347.83 1.32%
1964 \$13,478,260.87 1.31%
1965 \$13,695,652.17 1.61%
1966 \$14,086,956.52 2.86%
1967 \$14,521,739.13 3.09%
1968 \$15,130,434.78 4.19%
1969 \$15,956,521.74 5.46%
1970 \$16,869,565.22 5.72%
1971 \$17,608,695.65 4.38%
1972 \$18,173,913.04 3.21%
1973 \$19,304,347.83 6.22%
1974 \$21,434,782.61 11.04%
1975 \$23,391,304.35 9.13%
1976 \$24,739,130.43 5.76%
1977 \$26,347,826.09 6.50%
1978 \$28,347,826.09 7.59%
1979 \$31,565,217.39 11.35%
1980 \$35,826,086.96 13.50%
1981 \$39,521,739.13 10.32%
1982 \$41,956,521.74 6.16%
1983 \$43,304,347.83 3.21%
1984 \$45,173,913.04 4.32%
1985 \$46,782,608.70 3.56%
1986 \$47,652,173.91 1.86%
1987 \$49,391,304.35 3.65%
1988 \$51,434,782.61 4.14%
1989 \$53,913,043.48 4.82%
1990 \$56,826,086.96 5.40%
1991 \$59,217,391.30 4.21%
1992 \$61,000,000.00 3.01%
1993 \$62,826,086.96 2.99%
1994 \$64,434,782.61 2.56%
1995 \$66,260,869.57 2.83%
1996 \$68,217,391.30 2.95%
1997 \$69,782,608.70 2.29%
1998 \$70,869,565.22 1.56%
1999 \$72,434,782.61 2.21%
2000 \$74,869,565.22 3.36%
2001 \$77,000,000.00 2.85%
2002 \$78,217,391.30 1.58%
2003 \$80,000,000.00 2.28%
2004 \$82,130,434.78 2.66%
2005 \$84,913,043.48 3.39%
2006 \$87,652,173.91 3.23%
2007 \$90,148,695.65 2.85%
2008 \$93,610,000.00 3.84%
2009 \$93,276,956.52 -0.36%
2010 \$94,806,956.52 1.64%
2011 \$97,799,565.22 3.16%
2012 \$99,823,478.26 2.07%
2013 \$101,285,652.17 1.46%
2014 \$102,928,695.65 1.62%
2015 \$103,050,869.57 0.12%
2016 \$104,350,869.57 1.26%
2017 \$106,573,913.04 2.13%
2018 \$109,230,434.78 2.49%
2019 \$111,155,434.78 1.76%
2020 \$112,526,811.59 1.23%
2021 \$120,256,086.96 6.87%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 126 more rows

This conversion table shows various other 1889 amounts in today's dollars, based on the 2,906.40% change in prices:

Conversion: 1889 dollars today
Initial value Equivalent value
\$1 dollar in 1889 \$30.06 dollars today
\$5 dollars in 1889 \$150.32 dollars today
\$10 dollars in 1889 \$300.64 dollars today
\$50 dollars in 1889 \$1,503.20 dollars today
\$100 dollars in 1889 \$3,006.40 dollars today
\$500 dollars in 1889 \$15,032.01 dollars today
\$1,000 dollars in 1889 \$30,064.02 dollars today
\$5,000 dollars in 1889 \$150,320.11 dollars today
\$10,000 dollars in 1889 \$300,640.22 dollars today
\$50,000 dollars in 1889 \$1,503,201.09 dollars today
\$100,000 dollars in 1889 \$3,006,402.17 dollars today
\$500,000 dollars in 1889 \$15,032,010.87 dollars today
\$1,000,000 dollars in 1889 \$30,064,021.74 dollars today

## Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £4,000,000.00 in 1889 would be equivalent to £539,816,472.73 in 2021, an absolute change of £535,816,472.73 and a cumulative change of 13,395.41%.

Compare these numbers to the US's overall absolute change of \$116,256,086.96 and total percent change of 2,906.40%.

## Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1889 and 2021.

Compare these values to the overall average of 2.61% per year:

Category Avg Inflation (%) Total Inflation (%) \$4,000,000 in 1889 → 2021
Food and beverages 3.89 15,352.44 618,097,627.73
Housing 4.17 21,830.48 877,219,082.06
Apparel 1.96 1,191.39 51,655,511.55
Transportation 3.28 6,968.28 282,731,137.84
Medical care 4.69 42,199.44 1,691,977,599.14
Recreation 1.14 347.27 17,890,758.15
Education and communication 1.84 1,003.48 44,139,395.67
Other goods and services 4.94 58,331.90 2,337,276,118.54

The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:

For all these visualizations, it's important to note that not all categories may have been tracked since 1889. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$4,000,000 since 1889

Our calculations use the following inflation rate formula to calculate the change in value between 1889 and today:

CPI today CPI in 1889
×
1889 USD value
=
Today's value

Then plug in historical CPI values. The U.S. CPI was 9.2 in the year 1889 and 276.589 in 2021:

276.5899.2
×
\$4,000,000
=
\$120,256,086.96

\$4,000,000 in 1889 has the same "purchasing power" or "buying power" as \$120,256,086.96 in 2021.

To get the total inflation rate for the 132 years between 1889 and 2021, we use the following formula:

CPI in 2021 - CPI in 1889CPI in 1889
×
100
=
Cumulative inflation rate (132 years)

Plugging in the values to this equation, we get:

276.589 - 9.29.2
×
100
=
2,906%

## Comparison to S&P 500 Index

The average inflation rate of 2.61% has a compounding effect between 1889 and 2021. As noted above, this yearly inflation rate compounds to produce an overall price difference of 2,906.40% over 132 years.

To help put this inflation into perspective, if we had invested \$4,000,000 in the S&P 500 index in 1889, our investment would be nominally worth approximately \$767,888,807,018.53 in 2021. This is a return on investment of 19,197,120.18%, with an absolute return of \$767,884,807,018.53 on top of the original \$4,000,000.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 96.67% of returns (\$742,347,021,103.08) during this period. This means the inflation-adjusted real return of our \$4,000,000 investment is \$25,537,785,915.46. You may also want to account for capital gains tax, which would take your real return down to around \$21,707,118,028 for most people.

Investment in S&P 500 Index, 1889-2021
Original Amount Final Amount Change
Nominal \$4,000,000 \$767,888,807,018.53 19,197,120.18%
Real
Inflation Adjusted
\$4,000,000 \$25,541,785,915.46 638,444.65%

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1889 to latest available data for 2021 using average monthly close price.

For more details on the S&P 500 between 1889 and 2021, see the stock market returns calculator.

## News headlines from 1889

Politics and news often influence economic performance. Here's what was happening at the time:

• George Eastman's Kodak flexible rolled films are sold for the first time.
• The World Fair, "Exposition Universelle" opens in Paris, after the completion of the Eiffel Tower.
• Nintendo Koppai is founded by Fusajiro Yamauchi, whose goal was to produce and market Hanafuda, card game. The company is today known as Nintendo Company, Limited

## Data Source & Citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page: “\$4,000,000 in 1889 → 2021 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 3 Dec. 2021, https://www.officialdata.org/us/inflation/1889?amount=4000000.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

#### About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Cumulative price change 2,906.40% Average inflation rate 2.61% Converted amount (\$4,000,000 base) \$120,256,086.96 Price difference (\$4,000,000 base) \$116,256,086.96 CPI in 1889 9.200 CPI in 2021 276.589 Inflation in 1889 -3.16% Inflation in 2021 6.22% \$4,000,000 in 1889 \$120,256,086.96 in 2021